In the Republic of Croatia, we are facing a process of accelerated aging of the population. The social welfare system needs to be tailored to the needs of older people which are constantly changing and increasing. Elderly people are faceing with the typical effects of aging, but also with the onset of difficulties and diseases that are more common in older ages. The standards of modern gerontology focus on improving the quality of life of older people and their activity, not just on their physical health. Mental health is defined as the state of complete physical, mental and social well-being, not just the absence of disease or weakness. Music therapy and in general engageing in music activities, especially for people who are in residences for older people, can greatly assist in maintaining and improving the mental health of the elderly. In this study, the effects of music therapy on the mental health of elderly persons housed in homes for the elderly was studied. 26 participants, elderly home users, were subjected to a music therapy treatment lasting 12 sessions before and after which mental health aspects such as depression, anxiety, perceived stress and subjective well-being were measured. The results have shown that there is a significant effect of music therapy on reducing symptoms of depression and anxiety, reducing perceived stress and increasing subjective well-being in the elderly.